Direct Mail & Catalog Marketing Math: Response Rates, Break-Even & List Testing
Build up the cost per piece, measure response and cost per order, find the break-even response rate, test lists with a z-test, select RFM deciles, judge catalog pages, value new buyers and forecast a rollout, with every cell checked as you go.
The first lesson is free — no account needed.
About this course
A direct mail and catalog marketing course that plans the fall catalog of one fictional home-goods retailer in a spreadsheet, for direct marketers, catalog managers and marketing analysts. You build the cost per piece and per thousand from print, postage, lettershop and list rental, score past mailings on response rate, cost per order, average order value and sales per piece, find the contribution per order and the break-even response rate, decide with a two-proportion z-test whether one rented list really beats another, mail only the RFM deciles of the house file whose response beats break-even, measure sales and margin per catalog page, value a new buyer over five years to set the allowable acquisition cost and turn list tests into a cautious rollout forecast with a chart. The first lab is free.
Lessons
- Cost per Piece: Print, Postage, Lettershop and List RentalFree
- Response Rate, Cost per Order and Sales per Piece Pro
- Contribution per Order and the Break-even Response Rate Pro
- List Testing: Two Rented Lists and a z-Test Pro
- RFM Deciles: Mail Only the Segments Above Break-even Pro
- Catalog Economics: Sales and Margin per Page Pro
- Lifetime Value of a New Buyer and the Allowable Acquisition Cost Pro
- Rollout Forecast: From a 10,000-Name Test to the Full List Pro